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Is Apple bullying chipmakers in the flash market?
travelin cat

WebmasterWorld Administrator travelin_cat us a WebmasterWorld Top Contributor of All Time 10+ Year Member

Msg#: 4034127 posted 5:55 pm on Nov 30, 2009 (gmt 0)

An article in the Korea Times argues it is:

The summary of the arguments goes as this -- Apple is contributing to the suppression in flash memory prices by ordering more chips from semiconductor makers than the amount it actually buys from them.

"Apple should certainly be blamed for deteriorating the supply and demand cycle in the global NAND flash market," a senior industry official told The Korea Times, refusing to be named.

And there is this:

Some industry watchers say that Apple's purchasing strategies are linked with its efforts to boost iPhone sales at a time before rival handsets, powered by the Google-backed Android operating system, generate further buzz in global markets.

Read the entire article here. [koreatimes.co.kr]



WebmasterWorld Senior Member swa66 us a WebmasterWorld Top Contributor of All Time 10+ Year Member

Msg#: 4034127 posted 9:30 pm on Nov 30, 2009 (gmt 0)

A single customer responsible for skewing the supply-demand mechanism ?

It doesn't sound like the customer is responsible.
The suppliers are doing it to themselves if they rely on uncommitted predictions from their customers. They should smarten up and make them committed numbers or not trust them.

Methinks the suppliers are getting out of a niche and into commodity, which is *far* less profitable per item due to the increased competition among different suppliers, but the increased volume should somewhat make up for that, unless they've managed to sell at a loss.

A few years back we always had too little production creating more demand than supply and rocketing prices for memory. Never heard them chip makers complain nor show mercy on the consumers then.

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